Why Employee Wellbeing Is Now a Recruitment Essential

Guest blog written by Marion Hewitt

Today, candidates aren’t just asking what a role pays – they want to know what it feels like to work for you. The emphasis has shifted from salary to wellbeing, flexibility, and purpose, making employee wellbeing a defining factor in attracting and retaining top talent.

Research from CIPD’s Good Work Index 2025 shows that job quality is shaped by work–life balance and autonomy, while one in four workers say their job negatively impacts their health. Likewise, Randstad’s Workmonitor 2025 found work–life balance overtaking pay as the top job choice driver for the first time in 22 years.

These findings, supported by data from Best Places to Work, show that top-rated companies score significantly higher for employee wellbeing and why organisations must now view wellbeing as a strategic advantage, not just a perk.

What Makes an Organisation Attractive to Jobseekers?

What it feels like to work for an organisation is influenced by a complex mix of factors linked to both workplace and employee wellbeing, which are distinct but related.

Workplace wellbeing is about the everyday conditions that let people perform well. This impacts engagement and how employees enjoy their role.  This includes clear job design, realistic workloads, capable managers, reliable systems and tools, and a healthy physical/psychological environment.

Employee wellbeing is the support you provide employees to look after their health. This might include an Employee Assistance Programme (EAP), wellbeing champions, a range of wellbeing initiatives, and life-stage policies such as enhanced parental leave, carers’ leave, or menopause support.

Employee wellbeing initiatives have most impact when they are easy to use without stigma and backed by manager behaviour.

Research consistently shows that line manager capability is the biggest determinant of wellbeing success.  When managers feel equipped to support wellbeing, they can prevent stress escalation and reduce turnover.

Where organisations focus on employee wellbeing without addressing workplace wellbeing it puts the responsibility on the employee rather than recognising that workplace wellbeing is necessary to protect employee wellbeing.

How Employee Wellbeing Is Shaping Candidate Priorities

Gen Z and Millennials still care about pay, but they prioritise balance, psychological safety and purposeful work.

They are likely to research culture before applying which means that employees actual experience will count for more than what you claim.

Parents and carers look for visible, usable flexibility to enable them to effectively manage multiple demands.

Research shows many could not remain in work without it. This means the approach to job design for example core hours, shift-swaps, or compressed weeks will impact how attractive an employer appears.

CIPD’s 2023 study reports about one in six mid-career women have considered leaving work due to the impact of the menopause on their physical and mental health, and receiving poor support. This impacts both reputational and retention risk. 

In recent years, organisations have focused heavily on flexibility, which significantly impacts employee wellbeing.  It gives employees more autonomy over how and when they work which lowers overall stress and conflict between different areas of life.  Employees also report better sleep and higher job satisfaction.

Given the demand for flexibility, it is interesting to note that only around 31% of UK job adverts mention flexibility up front. 

Whilst sector and role will influence what flexibility is available it is an important part of the employee value proposition in the world today.

It is also important to note that flexible working doesn’t work for everyone with research around isolation, lack of routine, blurring of boundaries etc.  Therefore, what is important is that there are a range of options and flexibility is flexible!

Wellbeing as a Key Talent Differentiator

The job market is complex at present and whilst overall vacancies are down on a few years ago high-quality candidates in high demand areas can be selective.  

Engineering and technology continues to be a competitive area for talent and ONS data shows candidates compare not just pay, but level of flexibility, tools, and manager capability. 

All these factors feed into the levels of stress experienced and have a wider impact on wellbeing.

Practical Steps to Stand Out from Competitors

Start with workplace design. Ensure roles are clearly defined and described, the level of autonomy is clear, the overall workload is manageable, the correct resources and systems are available etc.

If someone starts in this role, are you setting them up to be engaged, productive and successful?

Be clear on what flexibility means in your organisation. What is realistic and practical will vary significantly in different roles.  Take a solution focused approach to flexibility to gain benefits for both parties.

Data shows candidates actively filter for this information so not mentioning your policy could impact who you reach especially among carers and mid-career women. 

Train managers so they feel confident and competent to hold constructive conversations, build trust and psychological safety, can recognise the signs and symptoms of reduced wellbeing, and take a proactive approach to support and enabling wellbeing.

Set out what you provide to support employee wellbeing. Provide information that enables applicants to make an informed decision.

Takeaway: Embedding Wellbeing into Organisational Strategy

Organisations strategically connect wellbeing to recruitment and retention. Many of the changes that positively impact wellbeing do not require financial outlay.

There are measurable benefits of investing in employee and workplace wellbeing.  The strongest outcomes occur where there are clear metrics, leadership buy-in, role and person appropriate flexibility, with wellbeing is embedded within the wider organisational strategy.

Marion Hewitt (Chartered FCIPD) has over 30 year’s experience within HR. She has a MSc in Applied Positive Psychology and Coaching Psychology. Marion is an accredited trainer with Mental Health First Aid England, assessor for level 7 CIPD qualifications, and an award-winning coach. She established Protea Solutions, with its strapline ‘Unleashing the Power of your People’ to work with both individuals and organisations to build growth, performance and wellbeing through evidence-based practices. To learn more about her www.linkedin/in/marion-hewitt or proteasolutions.co.uk